Crypto Scandal Hits Argentina: Milei Faces Alleged Fraud Charges Over $Libra Token

The political and financial landscape in Argentina is reeling from the latest development in the $LIBRA cryptocurrency scandal. A congressional investigative committee has submitted its final report, concluding that President Javier Milei committed "alleged fraud" by using his presidential office to heavily promote a token that quickly collapsed, resulting in millions of dollars in losses for investors.

This alleged scheme, dubbed "Cryptogate," is the first major scandal of Milei's presidency and highlights the urgent need for clarity regarding cryptocurrency regulation in the intersection of politics and finance.

The Committee's Findings: 'Indispensable Cooperation'

The investigative committee, created by the Argentine Congress, delivered a damning 200-page report, warning that the far-right leader provided "indispensable cooperation for carrying out the scheme."

1. Presidential Promotion: The core of the accusation is that President Milei promoted the $LIBRA token on his personal social media account in February 2025, stating, "The world wants to invest in Argentina. $LIBRA." This endorsement instantly boosted the coin’s demand.

2. The Rug Pull: The committee found that $LIBRA was designed as a "memecoin previously designed for a rug pull". Insiders, who held approximately 70% of the total tokens, sold their holdings en masse immediately after Milei's post caused the price to spike.

3. The Collapse: The mass sell-off caused the value of $LIBRA to plummet by nearly 95% within hours, leading to estimated losses exceeding $250 million for approximately 44,000 retail investors.

4. Misuse of Office: The report explicitly finds that Milei "used the presidential office" for the benefit of "a group with privileged information," while his sister and Chief of Staff, Karina Milei, allegedly "facilitated the use of official national government facilities."

Political & Legal Fallout

The findings of the congressional committee have been submitted to the federal court investigation, which is already underway and centralized under Judge María Servini.

1. Dozens of Complaints: Over 100 criminal complaints alleging fraud and criminal association have been filed against Milei since the incident, primarily by opposition politicians and affected investors.

2. Asset Freeze: A judge previously ordered the temporary freezing of assets belonging to the token's alleged developers, who profited tens of millions of dollars from the crash.

3. Milei's Defense: The President has consistently denied having advance knowledge of the token's details, claiming he was simply promoting a private initiative to stimulate Argentine economy. He also ordered the Anti-Corruption Office (OA) to investigate the matter internally, which later cleared him of ethics violations, stating his social media post was a private act.

The Regulatory Uncertainty

The $LIBRA scandal underscores the urgent need for clear cryptocurrency regulation in South America. The blurring lines between political endorsement and financial advice leave investors vulnerable and highlight the risks associated with memecoins promoted by influential public figures. This event will likely accelerate calls for stricter oversight of digital asset launches and celebrity promotions across the region.

"This BBC News video explains the controversy surrounding the Argentine president and the $LIBRA cryptocurrency, providing visual and in-depth context on the case."

Argentina's President Javier Milei denies crypto fraud allegations | BBC News